Progressive Democrats Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez demanded answers from SVB's 14 largest depositors.
"Silicon Valley Bank's unusually cozy relationship with its clients increased the threat of contagion when the bank went under," Warren said in a statement.
SVB's banking practices were particularly attractive to startup companies that deposited more than the $250,000 limit insured by the Federal Deposit Insurance Corporation. "If the reports are accurate, these mutual backscratching arrangements could help explain why some customers placed massive, uninsured deposits at SVB," the lawmakers wrote. "And if these deposits were made by company executives and allowed by corporate boards in exchange for personal perks, that behavior raises potential concerns about whether they were meeting their fiduciary duties.
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